Inheritance Can't Buy a Home

By Steve RandallFont size :

Young Canadians who might have expected to use a future inheritance for a cash home purchase may have to think again. A report from Vancity suggests that, although there may be an inheritance, many millennials are unrealistic about how large it may be. In a survey undertaken in Vancouver, it found that more than 39 per cent expect an inheritance of more than $300,000. However, among parents of millennials, only 12 per cent expect to leave that much.

Sixty per cent of parents surveyed said that they have already given a portion of their wealth to their children, with downpayments among the uses for that money although student debt and car purchase was also a popular use for the funds.

With the median size of an inheritance in BC of $50,200 there should be enough for a downpayment but millennials hoping to buy without a mortgage may be disappointed.

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